Transportadora de Gas del Sur S.A. (TGS): PESTLE Analysis [Nov-2025 Updated]

You're looking at Transportadora de Gas del Sur S.A. (TGS) and seeing a great asset, but the truth is, its value is tangled up in Argentine politics. Your biggest challenge isn't the pipeline network-it's navigating a regulatory environment where annual inflation is running over 100%, crushing operating margins. We need to cut through the noise and map the near-term risks, from government control over regulated tariffs to the crucial need to deploy $300 million in Vaca Muerta capital expenditures (CapEx) this year. Below is the unvarnished PESTLE breakdown you need to make an informed decision on this essential energy player.

Transportadora de Gas del Sur S.A. (TGS) - PESTLE Analysis: Political factors

Government control over regulated gas tariffs and transportation fees.

The core of TGS's regulated business-natural gas transportation-remains deeply tied to government policy, specifically through the Argentine Gas Regulatory Body (ENARGAS). You might think the old tariff freeze risk is gone, but the government still holds the pen on rate adjustments. Still, the political environment has improved dramatically, shifting from a freeze to a managed adjustment system.

In the first quarter of 2025, ENARGAS approved a series of transitional tariff increases: a 2.5% hike in January, followed by 1.5% in February, and another 1.7% in March. This is a huge step toward normalization, as it allows TGS to claw back some value lost to inflation. The big win is the proposed new mechanism: a periodic adjustment composed of 50% based on the Consumer Price Index (CPI) and 50% based on the Wholesale Price Index (PPI), which should provide a defintely more predictable path forward. For the first half of 2025, this rate normalization pushed the regulated transportation segment's sales to approximately AR$ 150.9 billion in Q2 2025 alone, with an operating margin above 40%.

Here's the quick math on the tariff adjustments in early 2025:

Risk of contract renegotiation or forced peso-denominated revenue conversion.

The risk of arbitrary contract renegotiation, a historical headache in Argentina, has been significantly mitigated for TGS's core asset. The National Executive Power granted TGS a 20-year extension of its natural gas transportation license until 2047 on July 24, 2025 (Decree No. 495/2025). That's a massive win for long-term predictability. The license was set to expire in 2027, so this move removes a major political overhang and provides a solid foundation for future investment planning.

In the non-regulated segments, like midstream services in Vaca Muerta, TGS is already protected, as contracts are typically dollar-based and tied to international commodity prices. This diversification means that while the regulated transportation revenue is in pesos, the non-regulated revenue stream-which is growing-is largely insulated from domestic currency volatility. The government's push for the Large Investment Incentives Regime (RIGI) further signals a policy preference for legal stability and dollar-based returns for new, large-scale energy projects.

State-driven infrastructure projects, like the Néstor Kirchner pipeline, directly impacting TGS's capacity utilization.

State-driven infrastructure is now a clear opportunity, not just a risk. The government's push to monetize the Vaca Muerta shale formation directly benefits TGS, which is the key midstream player. The Néstor Kirchner Gas Pipeline (GPNK), recently renamed the Gasoducto Perito Francisco Pascasio Moreno (GPM), is a prime example.

TGS was awarded the contract to operate and maintain the GPM for a 5-year term. Even more critically, TGS was the sole bidder awarded the expansion works for the GPM on October 13, 2025. This US$500 million compression project is designed to boost the pipeline's transport capacity from 21 million cubic meters per day (MMm³/d) to 35 MMm³/d by mid-2026. This is a game changer. It means TGS's system utilization is set to increase significantly, leveraging the new state-built capacity to transport Vaca Muerta gas to consumption centers and, importantly, to export markets. TGS's firm contracted capacity was already high at 83.5 MMm³/d as of April 2025, so this expansion is crucial for future growth.

Shifting policy on dollar-denominated gas export permissions and volumes.

The political shift under the current administration is explicitly pro-export and pro-dollar, which is a major tailwind for TGS's non-regulated segments. The new 'Bases and Starting Points for the Freedom of Argentinians Act' aims to liberalize the energy sector. The most concrete change is the removal of price caps for the domestic sale of propane and butane in January 2025, replacing them with a new limit: export parity. This policy change directly incentivizes TGS to maximize its liquid gas exports, as the domestic market price is now tied to the higher international price.

The political environment is now prioritizing foreign currency generation, which means less interference with export volumes. Gas exports still require pre-authorization from the Secretary of Energy, but there are now no specific volumetric supply obligations for the local market that override these export rights. This policy is already reflected in the Liquids segment, where exports exceeded domestic sales for the first time in 2024, accounting for 23% of TGS's total sales. The trend is clear: the government wants more dollars, so they are helping you get them.

• Export parity pricing: Replaced domestic price caps for LPG in January 2025.
• Export priority: No local supply obligations override export rights.
• Investment incentive: RIGI provides tax benefits and legal security for large, export-focused projects.

Transportadora de Gas del Sur S.A. (TGS) - PESTLE Analysis: Economic factors

Persistent Argentine inflation pressuring operating costs

You're operating a massive infrastructure network in an economy still grappling with historic price increases, so managing costs is a daily fight. While Argentina's annual inflation rate has eased significantly from its 2024 peak, it remains a critical economic headwind for Transportadora de Gas del Sur S.A. (TGS). As of April 2025, the annual inflation rate stood at 47.3%, a sharp drop from the 2024 average of 178%, but still a major cost pressure point. This disinflationary trend, with forecasts for year-end 2025 ranging from 23.2% to 30%, is a positive sign, but the cumulative effect on local operating costs-everything from maintenance labor to domestically sourced materials-is substantial.

The good news is the regulated segment is now better protected. Since May 2025, the Natural Gas Transportation segment has benefited from an automatic monthly inflation update scheme for its tariffs. This mechanism helps TGS recover costs faster, a major structural improvement that restores predictability to the regulated business. Still, high inflation means higher working capital needs, and you have to be defintely aggressive on procurement to lock in prices.

Exchange rate volatility severely impacting dollar-linked debt servicing and capital expenditures

The Argentine Peso (ARS) remains highly volatile, and for a company like TGS with dollar-denominated debt, this creates a constant balance sheet risk. TGS's entire financial debt is denominated in foreign currency, mostly US dollars. The projected ARS/USD parity is expected to reach around 1,400 by year-end 2025.

To be fair, TGS has managed this risk well. The company proactively redeemed its 2025 bond and issued a new $490 million bond due in 2031, pushing out the maturity wall and establishing a very low capital payment profile until then. As of June 30, 2025, TGS maintained a strong liquidity position with cash and financial investments totaling US$ 561 million, and its Net Debt/EBITDA ratio was extremely low at 0.1. This strong dollar-based cash position acts as a natural hedge against currency depreciation, protecting its debt service capacity.

Macroeconomic instability delaying investment in the Vaca Muerta shale play

Macroeconomic instability is a classic two-sided coin for the energy sector. While overall foreign investment in the upstream (drilling and production) side of the Vaca Muerta shale play is slowing-with a reported 24% drop in fracking stages in May-June 2025-TGS's midstream infrastructure business is actually expanding.

The uncertainty has caused major upstream players to restrain spending, leading to a near-term slowdown in drilling activity. However, TGS is a crucial bottleneck for getting Vaca Muerta gas to market, making its investments strategic and less vulnerable to immediate price fluctuations. TGS is moving forward with significant capital expenditures (CapEx) to expand capacity:

• Secured the Perito Moreno Pipeline expansion project, with an estimated investment of US$ 560 million.
• Planned investment of approximately US$ 220 million to expand natural gas transportation capacity in the final sections of its pipeline system.

This is a clear move to capture long-term growth by solving the infrastructure bottleneck, even as upstream activity temporarily wavers.

Revenue stream split between regulated tariffs and non-regulated liquids production/midstream services

TGS's revenue diversification is its key strength, providing a buffer against the political risk inherent in its regulated business. The company operates two distinct segments: the regulated Natural Gas Transportation and the non-regulated Liquids Production and Commercialization and Midstream Services. The tariff normalization process, which includes monthly inflation-linked updates since May 2025, has dramatically shifted the revenue mix.

In Q1 2025, the regulated transport segment was the largest contributor to revenue, a reversal from historical trends. Here's the quick math on the Q1 2025 net revenue split:

Natural Gas Transportation contributed 47% of revenues in Q1 2025, up from only 11% a year prior. This normalization is a game-changer for TGS's earnings quality.

Finance: draft 13-week cash view by Friday, focusing on the ARS/USD impact on local operating costs.

Transportadora de Gas del Sur S.A. (TGS) - PESTLE Analysis: Social factors

You're operating in a country where the social contract around energy is fundamentally changing, so the key risk for Transportadora de Gas del Sur S.A. is managing the public's expectation of affordable gas while the government pushes for market-driven pricing and massive infrastructure growth. This balancing act directly impacts TGS's revenue stability and project timelines. You cannot ignore the social cost of economic reform.

Public pressure for stable, affordable residential gas supply, influencing regulatory decisions.

The Argentine government's push to dismantle the long-standing subsidy regime and normalize tariffs has immediately put TGS at the center of a major social debate. While the regulatory body, ENARGAS (Argentine National Gas Regulatory Body), has granted necessary tariff adjustments, public tolerance for price hikes is low. The government's austerity program cut state energy subsidies by $2.7 billion in the first seven months of 2025, directly transferring cost to consumers and increasing pressure on politicians to intervene.

For TGS's regulated Natural Gas Transportation segment, this meant a series of transitional tariff increases in early 2025, including a 2.5% hike in January and a 1.5% hike in February, following the massive 675% increase from April 2024. This is a necessary step toward financial viability, but it fuels public unrest. The company's average firm-contracted capacity is 83.5 MMm³/d (million cubic meters per day), and TGS transports approximately 60% of the gas consumed in the country. That means TGS is an unavoidable focus for any public backlash against energy costs.

Here's the quick math on the residential supply driver:

Labor union power in the energy sector impacting pipeline maintenance and expansion schedules.

Labor union power, particularly in the Neuquén region where the Vaca Muerta shale play is located, represents a significant near-term operational risk. The powerful Sindicato de Petroleros Privados de Neuquén, Río Negro y La Pampa (Private Oil and Gas Union) demonstrated its ability to disrupt the entire energy value chain in 2025.

In mid-2025, the union announced a 48-hour strike in Vaca Muerta to protest the layoff and suspension of over 3,000 workers in the region. While TGS is a midstream operator, a stoppage in Vaca Muerta production immediately reduces the gas volume available for TGS's pipelines and conditioning plants, like the one in Tratayén. The union's argument is that companies are slowing activity while waiting for new infrastructure, essentially putting the burden of the transition on the workers. This is a direct threat to the schedule of TGS's major expansion projects, including the Perito Moreno pipeline, which is a key national priority.

• Labor action directly threatens Vaca Muerta's record production of 158.8 million cubic meters per day (cu m/d) as of June 2025.
• Disputes over layoffs and wages due to high inflation (projected annual inflation around 45% in 2025) create constant friction.
• Any strike action in the Neuquén area can delay the completion of TGS's $700 million expansion of the Perito Moreno pipeline, impacting the government's timeline to replace costly winter gas imports.

Demand for energy security and self-sufficiency driving national infrastructure policy.

The social demand for energy security-the simple need to keep the lights on and homes heated-is the primary driver behind the national policy that benefits TGS. The government's goal is to achieve energy self-sufficiency by 2030, a goal that relies entirely on unlocking Vaca Muerta's vast reserves. TGS is a central pillar of this strategy.

The expansion of the Perito Moreno pipeline, awarded to TGS in October 2025, is a direct response to this social and strategic need. This project is expected to generate fiscal savings of approximately $450 million per year through import substitution alone.

TGS has proactively expanded its midstream capacity in Vaca Muerta to support this goal. The conditioning capacity at the Tratayén Plant was expanded to 28 MMm³/d in February 2025. This infrastructure is essential because it allows the high-volume, unconventional gas from the fields to be processed and injected into the national trunk system, minimizing the risk of winter supply shortages that lead to social and political crises.

Local community engagement critical for new pipeline right-of-way acquisition.

For any linear infrastructure company like TGS, securing the right-of-way (ROW) is the most sensitive social factor. The 9,200 km of pipeline TGS operates cross numerous provinces and local communities, and the new expansion projects, such as the $700 million Perito Moreno pipeline, require new land use agreements.

While specific, quantifiable 2025 social investment figures were not disclosed in the public financial reports, the need for effective engagement is paramount. Failed community relations translate directly into project delays and cost overruns. For example, a delay in acquiring a single ROW segment can halt a multi-million-dollar project. TGS's ability to execute its $327 million investment plan through 2029 (excluding the Perito Moreno expansion) hinges on maintaining strong, locally-focused relationships.

• Manage land use and compensation for the new Perito Moreno pipeline segments across the Neuquén and Buenos Aires provinces.
• Ensure local hiring and procurement to mitigate community opposition linked to unemployment risks highlighted by the 2025 Vaca Muerta layoffs.
• Adhere to the Global Reporting Initiative (GRI) standards for transparency in social and environmental performance.

The core action for TGS here is to defintely translate the national benefit of energy security into tangible, local economic benefits for the communities along the pipeline route.

Transportadora de Gas del Sur S.A. (TGS) - PESTLE Analysis: Technological factors

Need for compression station upgrades to handle increased Vaca Muerta gas flow.

You cannot monetize the massive gas reserves of Vaca Muerta without the infrastructure to move it, and that means a major technological upgrade to the pipeline compression system. TGS is the linchpin here, having been awarded the expansion of the Perito Moreno Gas Pipeline (GPM) in October 2025.

This expansion is a direct technological response to a physical bottleneck. The project will increase the transport capacity from 21 million cubic meters per day (MMcm/d) to 35 MMcm/d, adding a crucial 14 MMcm/d to the system. The core of this is compression technology: TGS is installing three new compressor plants and upgrading the existing Tratayén plant with a fourth unit, adding a total of 90,000 horsepower (HP) to the system. This isn't just a bigger pipe; it's a critical technological leap to handle the pressure and volume required for national supply and future export. About US$ 150 million of the total project investment is expected to be disbursed in 2025 for initial works and advance payments.

Adoption of Supervisory Control and Data Acquisition (SCADA) systems for pipeline integrity.

Managing over 9,200 kilometers of pipeline, TGS relies heavily on Supervisory Control and Data Acquisition (SCADA) systems and other operational technology (OT) to ensure pipeline integrity. These systems are the eyes and ears of the network, but they require constant technological refresh to stay ahead of corrosion, material fatigue, and operational stress.

The company commits significant capital to this continuous technological vigilance. TGS has a ~US$ 320 million maintenance CapEx plan spread over five years, which funds the core integrity program. This money goes directly into advanced inspection and monitoring technologies, which is the real work of pipeline integrity management.

• Run in-line inspections (ILI) or smart pigs along pipelines.
• Perform direct assessment techniques, like CIS and DCVG surveys, over sections with no Scraper Traps.
• Execute recoating replacements (TGS completed 6 km in 2024) and non-destructive tests (NDT) like magnetic particle and ultrasound to detect anomalies.

The SCADA component is what ties all that data together in real-time for decision-makers. You can't afford a failure on a system that transports over 60% of the country's gas, so the investment in predictive analytics and real-time monitoring is non-negotiable.

Investment in new liquefaction technology for potential Liquefied Natural Gas (LNG) export.

TGS's direct technological investment is currently focused on the midstream, which is the necessary precursor to large-scale LNG export. The US$ 780 million pipeline expansion is the essential technological enabler that positions Argentina to become a major LNG supplier by 2030.

The company's existing technological strength lies in natural gas liquids (NGL) production and commercialization at its Cerri Complex, which has a processing capacity of 47 MM m³/d. [cite: 12 (from previous search)] The Vaca Muerta gas expansion will feed this, allowing TGS to extract more valuable products like propane, butane, and ethane, which are then exported. The new pipeline capacity is explicitly aimed at replacing expensive imported LNG and diesel, creating the necessary domestic supply buffer before Argentina can pivot to being a net exporter. The technology TGS is investing in now is the high-pressure, high-volume gas transport system that future LNG liquefaction plants will need as a feedstock. That's the defintely smart, strategic move.

Cybersecurity threats to critical national gas infrastructure demanding constant vigilance.

For a company operating critical national gas infrastructure, cybersecurity is no longer an IT problem; it's an operational risk that demands continuous technological vigilance. The sheer scale of TGS's network makes it an attractive target for sophisticated threat actors, including nation-state groups.

The threat landscape in 2025 is defined by advanced attacks targeting the industrial control systems (ICS) and SCADA platforms that manage pipelines. For example, ransomware attacks targeting industrial operators surged by 46% in the first quarter of 2025 alone. [cite: 13 (from previous search)] Furthermore, an estimated 40% of all cyberattacks are now driven by Artificial Intelligence (AI), making them more adaptive and harder to detect. [cite: 3 (from previous search)]

This necessitates a constant, unquantified technological investment in:

• Real-time threat detection and anomaly-based monitoring.
• Network segmentation to isolate critical OT/SCADA systems from corporate IT.
• Advanced security for remote terminal units (RTUs) across the vast pipeline network.

The risk isn't just data theft; it's the potential for physical sabotage to the gas flow, which would have a national economic impact. TGS must treat cybersecurity as an ongoing, high-priority operational expense, not a one-time CapEx project, to defend its core assets.

Transportadora de Gas del Sur S.A. (TGS) - PESTLE Analysis: Legal factors

Regulatory framework set by ENARGAS governing tariffs and service quality

The core of Transportadora de Gas del Sur S.A. (TGS)'s legal environment is the regulatory framework established by the Ente Nacional Regulador del Gas (ENARGAS), the National Gas Regulatory Entity. This agency dictates the tariffs and service quality standards for the natural gas transportation segment, which is a significant portion of TGS's business.

A major legal and financial milestone in 2025 was the resolution of the tariff freeze issues. Following a series of transitional increases, ENARGAS approved a new structure, including a 2.5% tariff increase effective January 1, 2025, with subsequent hikes of 1.5% in February and 1.7% in March 2025. This movement toward cost-reflective tariffs is critical for TGS's financial health and ability to fund capital expenditure (CAPEX).

The regulatory stability was further cemented on July 24, 2025, when the National Executive Power granted TGS a 20-year license extension until 2047 (Decree No. 495/2025), securing the company's operational future for decades. That's a defintely positive signal for long-term investors.

Ongoing legal disputes regarding tariff adjustments and regulatory lag from previous years

While the new tariff increases address the immediate financial strain, the issue of regulatory lag-the delay between cost increases and approved tariff adjustments-from previous years remains a factor. The new Five-Year Tariff Review (RQT) process, which was mandated to enter into force by July 9, 2025, aims to resolve this structural issue.

ENARGAS has proposed a periodic tariff adjustment mechanism tied to inflation, specifically a formula composed of 50% Consumer Price Index (CPI) and 50% Producer Price Index (PPI). The target Weighted Average Cost of Capital (WACC), which is the return on investment TGS is legally entitled to earn, is set at 7.18% (real and after tax) for this review period. This new formula is designed to prevent the accumulation of regulatory debt that plagued the company after the suspension of the 2017 Integral Tariff Revision (ITR).

The regulatory shift is complex, but the market is focused on the new regulatory body: The ENTE NACIONAL REGULADOR DEL GAS Y LA ELECTRICIDAD was constituted in July 2025 (Decree N° 452/2025) and is set to replace ENARGAS, creating a period of organizational change that could impact the pace of future regulatory decisions.

Strict environmental impact assessment (EIA) requirements for all pipeline expansion projects

TGS's major infrastructure projects, particularly those related to the Vaca Muerta basin, are subject to stringent Environmental Impact Assessment (EIA) requirements at both the federal and provincial levels. For instance, the expansion of the Perito Moreno Pipeline (GPM) is a significant undertaking, with the company being awarded the project in October 2025. The total investment plan for capacity enhancement, including the GPM expansion, is substantial.

Compliance costs are embedded in the project's economics. The company is actively working to align its operations with international standards, which is a non-negotiable legal requirement for its global profile.

• Major expansion project: Perito Moreno Pipeline (GPM) expansion.
• Total investment plan: Approximately US$ 700 million for capacity enhancement.
• Environmental compliance focus: Diagnostic study for GHG Emissions Inventory verification (ISO 14064-1 Standard).
• Water management: Quantification of the company's first water footprint.

Compliance with international anti-corruption laws for foreign investment and bond issuance

As a company listed on the New York Stock Exchange (NYSE) and with significant foreign investment, TGS must strictly adhere to international anti-corruption laws, including the U.S. Foreign Corrupt Practices Act (FCPA) and the U.K. Bribery Act. This compliance is paramount for maintaining access to global capital markets.

The success of the company's recent capital raise is a direct indicator of its robust compliance framework. TGS successfully executed a $500 Million Global Bond Offering on November 14, 2025, a transaction that would be impossible without a clean legal and anti-corruption record. The company's internal policy sets clear, measurable limits to mitigate risk, such as capping the value of gifts at US$100 or less and entertainment at US$500 or less.

Here's the quick math: raising $500 million in a global bond market means the legal due diligence on TGS's governance and anti-corruption controls was thorough and passed muster with international underwriters. This ongoing compliance is a continuous operational cost, but it's the price of admission for global financing.

Transportadora de Gas del Sur S.A. (TGS) - PESTLE Analysis: Environmental factors

You're looking at the environmental landscape for Transportadora de Gas del Sur S.A. (TGS) and it's a classic midstream challenge: how do you manage the carbon footprint of a massive, decades-long asset while simultaneously enabling a major new shale play like Vaca Muerta? The short answer is that TGS is managing the transition risk by aggressively targeting methane leaks and committing significant capital to new, efficient infrastructure. This is a matter of both regulatory compliance and market access.

Here's the quick math: If TGS can successfully transition $300 million of its planned 2025 CapEx into Vaca Muerta-related infrastructure before the next election cycle, its long-term cash flow is secure. But that's a big 'if.' Finance: Monitor the official-to-parallel exchange rate spread daily.

Focus on reducing methane emissions from pipeline operations and compression stations

Methane is the immediate, high-impact environmental risk for any gas transporter. It's a powerful greenhouse gas (GHG), and regulators and investors are watching fugitive emissions (unintentional leaks) closely. TGS has an active Methane Emissions Reduction Plan as part of its 2022-2026 Five-Year Environmental Plan. The goal is ambitious: a 50% reduction in methane emissions by 2030. Achieving this is defintely a core operational priority, not just a sustainability report footnote.

This commitment translates into tangible investments in leak detection and repair (LDAR) technology and upgrading compression stations. The business case here is simple: captured methane is gas that can be sold, so abatement often pays for itself. Globally, analysts estimate that around 35 Mt of total methane emissions from oil, gas, and coal could be avoided at no net cost, based on 2024 energy prices. TGS is actively mapping its emissions profile to pinpoint the high-impact areas for capital deployment.

Increased scrutiny on land use and biodiversity protection during new pipeline construction

The massive expansion of the Perito Moreno gas pipeline, which is critical for Vaca Muerta, brings intense scrutiny on land use and biodiversity. TGS was awarded the expansion contract in October 2025, a project requiring a $700 million investment to increase transport capacity from 21 million to 35 million cubic meters per day. This project involves new pipeline segments and the construction of three new compressor plants totaling 90,000 horsepower.

New construction of this scale requires rigorous Environmental Impact Assessments (EIAs). The company must manage risks related to:

• Protecting sensitive ecosystems and wildlife habitats along the new route.
• Coordinating with local communities and indigenous groups during the permitting process.
• Minimizing soil erosion and managing runoff near water bodies.
• Restoring right-of-way (ROW) areas post-construction to meet regulatory standards.

The political and social license to operate (SLO) is now tied directly to how effectively TGS executes these environmental mitigation plans. Any significant delay or environmental incident could halt a multi-hundred-million-dollar project.

Water usage regulations in the Vaca Muerta region indirectly affecting gas availability for TGS

Transportadora de Gas del Sur S.A. is a midstream company, but its throughput is entirely dependent on the upstream activity in Vaca Muerta, which is water-intensive due to hydraulic fracturing (fracking). Provincial regulations in Neuquén Province govern water rights and usage, and these rules indirectly cap the gas supply TGS can transport.

The scale of the water challenge is clear. Water consumption for fracking in Vaca Muerta was projected to reach 7.4 million m³ per year by 2024. What this estimate hides is the wastewater issue. The region currently treats only about 5% of its shale production wastewater, creating a major regulatory and environmental bottleneck for all Vaca Muerta operators. TGS is trying to lead by example in its own operations, setting a 2025 goal to recover 80% of its treated water for irrigation, but the overall basin-wide water management remains a systemic risk to gas availability.

Transition risk as global energy policy shifts toward renewables, though gas is a transition fuel

The global energy transition is a long-term risk, but natural gas is currently positioned as a critical transition fuel, especially in Argentina. The Vaca Muerta expansion is a core national strategy to replace expensive imports of Liquefied Natural Gas (LNG) and diesel, which is projected to help the country's energy trade balance exceed US$7,000 million in 2025. TGS is the key enabler for this shift.

To hedge against the long-term transition risk, TGS is actively diversifying its business model, moving beyond simply transporting gas. This is a smart move to ensure relevance as global energy policy eventually moves past gas.